KARACHI: In a major development, Hub Power Holdings Limited, a wholly-owned subsidiary of The Hub Power Company Limited (Hubco), has announced to diversify its investment by entering in the business of electric vehicles, with Build Your Dreams (BYD), a leading Chinese EV manufacturer, through its associate company, Mega Motor Company (Private) Limited.

“Hub Power Holdings Limited, a wholly-owned subsidiary of The Hub Power Company Limited, through its associated company, Mega Motor Company (Private) Limited, is entering into a new line of business in electric vehicles, with BYD Auto Industry Company Limited, in Pakistan,” a notice sent to Pakistan Stock Exchange on Friday said.

BYD is the world’s largest maker of electric vehicles. In 2023 BYD sold 1.57 million electric vehicles, an increase of 73 percent YoY, in addition to selling 1.44 million units of hybrid vehicles.

The consummation of this new venture will include execution of definitive agreements and purchase of assets and is subject to corporate and regulatory approvals and consents”, the notice said.

“Our back of the envelope working suggests that for every 5,000 annual unit sales with Rs 6 million price tag and net margins at 10 percent, incremental earnings impact on HUBCO would be Rs 2.31/share assuming 100 percent stake in the company,” an analyst at Arif Habib Limited said.

Copyright Business Recorder, 2024